author: Bart Swiatek
PS5: Fewer Copies on Launch Than in the Case of PS4
Sony plans to reduce the production of the PS5 in the first year after the console's launch. The Japanese expect that the price of the device may affect the interest of customers.
IN A NUTSHELL:
- Sony plans to produce 5-6 million units of PS5 by March 2021;
- The Japanese company expects that the high price of the device will affect demand;
- The coronavirus makes it difficult to promote the platform, but does not directly affect the manufacturing process itself (although it may affect the launch price).
Bloomberg news agency reports that Sony may have to reduce the number of units of PlayStation 5 in the first year of the device's market presence. By the end of March 2021, the Japanese giant plans to produce 5-6 million PS5s, compared to 7.5 million manufactured during the first two quarters of PlayStation 4 presence.
Interestingly, according to anonymous sources, the immediate cause is not the ongoing SARS-CoV-2 coronavirus pandemic, but the assumption that the specs of the device will negatively affect its price and thus customer interest. According to "developers working on PS5 games", on the day of release the console will cost between $499 and $549. This is 100-150 more dollars than the PS4. Some analysts - such as Damian Thong from Macquire Capital - expect that both next-generation devices will be sold for $450, although such a price will mean losses for manufacturers.
The reason behind the rather high starting price of the device - if it really will be as high, because we still don't have any official information about it and we can only rely on speculation - is the rising production costs of individual components. Even without the pandemic the PS5 wouldn't be a cheap device to produce, but currently the costs have increased because the availability of some of the components is limited. Sony is able to get everything it needs in the required quantities, but it will pay more for it - so customers need to be ready to spend more too.
The pandemic mentioned in the first paragraph also affected the actions of the Japanese company. The company had specific plans to promote its new platform, which had to be changed and limited - maybe that's why we still know so little about the PS5. However, the coronavirus is said to have no impact on the console's manufacturing process itself, and everything seems to indicate that it will make its debut as planned, i.e. later this year. Admittedly, Bloomberg's anonymous sources stress that the situation may change (as may the projected number of copies that will be produced for the launch), but the Tokyo-based corporation is determined to launch the PS5 as announced - unless Microsoft delays the release of Xbox Series X. It looks like in 8 months we will get either both ninth generation platforms or none.